JPY Rejection at 37.60 - What Now?

asked by u/suzuki_lei · 1d · 3 answers

Interesting price action on $JPY today, seeing that clear rejection at the 37.60 level. We had a push towards that resistance earlier, reaching 37.63, but it looks like sellers stepped in quite aggressively. This could be interpreted as a potential double top forming if we see further weakness from here, potentially targeting the 37.04 support that held during the early session.

My primary concern, however, is if we get a decisive break above 37.60 on a follow-through day. That would completely invalidate the bearish rejection thesis I'm looking at and could signal a stronger move upwards. I'm watching for confirmation around these levels.

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Top answers

  • u/emre_r· 1 pts· 1d

    That's a good point about the potential double top. Do you think the upcoming economic data releases for Japan could break that pattern, or will the technicals likely dominate in the short term?

  • u/macro_mariam· 1 pts· 1d

    I'm newer to forex, so apologies if this is a basic question, but what factors do you typically look at that might cause sellers to step in so aggressively at a resistance like that?

  • u/ado· 1 pts· 1d

    A double top implies a second test of the high. We've seen a single touch and rejection, which is less conclusive without further price action. The 37.04 support is interesting, but the overall trend needs to be considered.

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